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Notice of Decision to Close Overseas AV Equipment Production Subsidiary
(Yamaha Electronique Alsace S.A.) |
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Tokyo, Japan, October 24, 2003 – Yamaha Corporation announces that it has decided to close Yamaha Electronique Alsace S.A. (Monswiller, France), an AV equipment production subsidiary located within the EU, on February 29, 2004. Production is tentatively scheduled to cease on November 30, 2003.
Yamaha Electronique Alsace was originally established as a strategic base for producing CD players within the EU region, with the aim of avoiding the payment of the stiff import duties imposed on AV equipment levied to protect local manufacturers. Yamaha Electronique Alsace began operations in 1989 as a division of sales subsidiary Yamaha Electronique France. Yamaha Electronique Alsace was made a local AV equipment production subsidiary in 1990.
As the EU policy changes diminished the company's initial mission of avoiding the payment of high tariffs on AV equipment imports, Yamaha Electronique Alsace came to serve additional functions, most notably as a repair center for CD-R/RW drives, demand for which grew rapidly in the mid-1990s.
With strategic production bases for AV equipment now in place in Malaysia, Indonesia, and China, where a new plant began full-fledged operations in May 2003 (in Suzhou), Yamaha Corporation concluded that Yamaha Electronique Alsace had completed its mission. Consequently, it was decided to cease production and close operations at the subsidiary. Yamaha Corporation management believes that the cessation of production and closure of operations at Yamaha Electronique Alsace will have only a minor impact on consolidated earnings.
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| Company name |
Yamaha Electronique Alsace S.A.
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| Head office |
Rue du Martelberg, Monswiller, Saverne, France
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| Representative |
President and Representative Director Takashi Dairokuno
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| Capital |
2,691,000 euro (100% invested by Yamaha Corporation)
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| Business fields |
AV equipment production/CD-R/RW repair
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| Employees |
47 (including 1 from Yamaha Corporation)
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| Recent performance |
4,910,000 euro (for the fiscal year ended March 31, 2003)
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| Stopping date for production |
November 30, 2003 (tentative)
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| Closing date for operations |
February 29, 2004 (tentative)
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| Liquidation date |
2008 (tentative)
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| Closure details |
Employees will be provided with termination/re-employment assistance.
losure-related costs are projected at approximately 2,000,000 euro.
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For further information, please contact
Yamaha Corporation
Corporate Communication Group,
Public Relations Division
TEL. +81-3- 5488-6601
FAX +81-3-5488-5060
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